CENVAT Credit on Director Sitting Fee.

[Pradeep Jain]

Sir,

 

Please let us know that ' CENVAT Credit is available on Director Sitting Fee. OR are we entitled to avail CENVAT Credit on Director Sitting Fee.

Wee seek your legal opinion.

Regards

 

Pradeep Jain

AI Summary

Debate on CENVAT Credit Eligibility for Director Sitting Fees Under Rule 4(7) of Cenvat Credit Rules, 2004 A forum discussion focused on whether CENVAT credit can be availed on Director Sitting Fees. Participants debated the eligibility of such fees as input services for CENVAT credit, especially under the reverse charge mechanism. It was noted that CENVAT credit is possible if the company provides taxable output services, but not for trading companies, as trading is considered an exempt service. Some contributors highlighted the need for payment in cash under the reverse charge mechanism and referenced Rule 4(7) of the Cenvat Credit Rules, 2004. The discussion also touched on the classification of director fees as input services and related legal challenges.